ARM chief executive to step down after 12 years

19 March 2013
By Edd Gent
Mobile version
Share |
ARM Holdings boss Warren East has announced he will step down as chief executive after 12 years

ARM Holdings boss Warren East has announced he will step down as chief executive after 12 years

The boss of chip design company ARM, which powers Apple's iPhone and iPad, is to stand down in July.

Warren East, who led ARM Holdings from start-up to near monopoly designer of smartphone chips, with its processors at the heart of Apple's iPhone and Samsung's Galaxy, is to step down as chief executive after 12 years.

Current group president Simon Segars will replace the 51-year-old from July, the British company said on Tuesday. East, who trained as an engineer, said it was time to move on but gave few clues on why he was leaving.

Since East joined in 1994, ARM has evolved from one processor product line to the world's dominant player in mobile computing, providing the microprocessors that run nearly all the world's smartphones, and around a third of all consumer devices.

"Obviously there's a part of me that would like to stay in this business forever, but we built the business with a team on the basis of collaborative thinking and planning far into the future," said East on a conference call with reporters.

"I believe now is the right time to bring in new leadership, somebody who can push the thinking even further forward and be sure to be around to implement those future plans."

ARM, founded in 1990, licenses its processor designs to chipmakers including Apple, Samsung, Qualcomm and Texas Instruments and its low-power processors have enabled it to dominate mobile computing, leaving rival Intel far behind in the sector.

In Cambridge, ARM has been at the heart of the so-called 'Silicon Fen', a cluster of high-tech firms at the southern tip of the English Fenland, and it now employs 2,300 people, with 2013 revenues forecast at around £680 million.

"We've built a global company based here in the UK, proving it can be done in technology, and I intend to do a bit more of that," said East.

East, whose total pay including share awards and long-term incentives was £7.6 million pounds in 2012, said it was too early to talk about his next move, but that another executive role was unlikely in the short term.

"I will continue working in the technology space with businesses and other organisations, and I'm particularly looking forward to doing more of that in the UK," he said.

But the time had come for fresh leadership, chairman John Buchanan said.

"This is a long-term business, and the execution of ARM's strategy will take longer than he (East) personally wishes to see through," he said.

His replacement, the 45-year-old Segars, has also been with ARM since the early days, leading the development of many of its first processors and working in engineering, sales and business development.

He said he did not expect to make any significant changes to company strategy.

"I've been here almost the entire time that ARM has been in existence and worked in the management team for most of that time, and worked very closely with Warren developing the strategy that we are now executing," he said.

"You shouldn't really expect that that is going to change suddenly, because the strategy that we have now I've been part of building and believe in very strongly."

Shares in the company were down 2.6 per cent at 896 pence by 9.44am GMT, but analysts were comfortable with Segars as East's successor.

"We do not believe that the choice of Mr Segars or the announcement is a significant surprise, though the timing is slightly earlier than we would have thought," said analysts at UBS.

East was very well regarded by investors, but Segars had been effectively running most of the business as executive vice president and general manager of the processor business and was also positively seen in the investment community, they said.

Latest Issue

E&T cover image 1605

"We visit Barcelona, one of the smartest cities in the world, to find out what makes it so special. What does it look like and what is the future?"

E&T jobs

  • Senior Development Engineer, Electronics

    Premium job

    Helmet Integrated Systems / Gentex Corporation
    • Letchworth Garden City, Hertfordshire
    • Competitive

    We are an innovative, robust and fast growing business, whose main focus is to deliver continues improvement to existing products and offer new sol..

    • Recruiter: Helmet Integrated Systems / Gentex Corporation

    Apply for this job

  • Smart Grid Research Engineer

    Premium job

    University of Strathclyde
    • Cumbernauld, Glasgow
    • Grade: 6/7* £26,537 - £37,768*

    Work as part of a growing dynamic team on a wide range of technical projects with particular emphasis on experimental validation and testing

    • Recruiter: University of Strathclyde

    Apply for this job

  • Electrical Asset Specialist

    Affinity Water
    • Hatfield, Hertfordshire

    Responsible for updating and writing electrical engineering standards, approved codes of practice and safe systems of work

    • Recruiter: Affinity Water

    Apply for this job

  • Senior Electronics Engineer

    York Instruments
    • York, North Yorkshire

    Senior electronics engineer to work as part of a team developing an MEG imaging system; working with the engineering team and external contractors.

    • Recruiter: York Instruments

    Apply for this job

  • Manufacturing Engineer - Circuit Card Assembly

    MBDA
    • Lostock Junction
    • Competitive Salary & Benefits

    What’s the opportunity?   Manufacturing UK is an integral part of the Operations Directorate whose principal mission is to ensure that MBDA’s deliverable commitments are met...

    • Recruiter: MBDA

    Apply for this job

  • High Voltage Engineer

    Premium job

    Essex X-Ray & Medical Equipment
    • Great Dunmow, Essex

    This High Voltage Engineer will provide design leadership for high voltage cable assemblies up to one megavolt.

    • Recruiter: Essex X-Ray & Medical Equipment

    Apply for this job

  • Team Leader - Flank Arrays

    BAE Systems
    • Barrow-In-Furness, Cumbria, England
    • Negotiable

    Team Leader - Flank Arrays Would you like to work in a unique role within the construction of the Astute Class submarines? We currently have a vacancy for a Team Leader - Flank Arrays at our site in Barrow-in-Furness. As a Team Leader - Flank Arrays, you

    • Recruiter: BAE Systems

    Apply for this job

  • Electronics and Software Engineer

    Copley Scientific Ltd
    • Nottingham
    • circa £35,000 per annum + bonus

    Develop new test equipment for the pharmaceutical industry. Good opportunities to grow and develop. Successful family-owned and managed business.

    • Recruiter: Copley Scientific Ltd

    Apply for this job

  • Intelligent Transport Systems Engineer - Highways Technology

    Premium job

    Mott MacDonald
    • Birmingham, West Midlands

    Our transport technology team in Birmingham is currently growing a highly skilled and customer-focused team to...

    • Recruiter: Mott MacDonald

    Apply for this job

  • Principal Robotic Systems Engineer

    Premium job

    National Oceanographic Centre
    • Southampton, Hampshire
    • £45,271 to £49,207 per annum

    Responsible for technical oversight and project management of internally and externally funded innovation centre projects.

    • Recruiter: National Oceanographic Centre

    Apply for this job

More jobs ▶

Subscribe

Choose the way you would like to access the latest news and developments in your field.

Subscribe to E&T